Kansai Nerolac Paints Ltd Faces Penalties Under Central Goods and Services Tax Act, 2017

Kansai Nerolac Paints Ltd has received orders from the Commissioner Appeals II, CGST & Central Excise, Mumbai and the Deputy Commissioner, CGST Division-West, CGST Faridabad under Section 74 of the Central Goods and Services Tax Act, 2017 (CGST Act). The orders impose penalties of Rs. 2,78,89,642/- for the Assessment Year 2017-18 and Rs. 20,49,698/- for the Assessment Year 2019-20. The demands are mainly due to the disallowance of transitional Input Tax Credit claimed by the Company. The Company has relevant records and legal precedence to prove its claim and intends to file an appeal before the GST Tribunal. The penalties are not expected to have a material impact on the financials, operations, or other activities of the Company.